What to include in buy to let landlord insurance

aaryal

Hi All,

First time landlord here. I'm in the process of getting buy to let/landlord insurance. I just wondered what I should include in it under one contract and what I should just get separately?

Here are all the different options:

• Buildings insurance - need this as a default
• Contents insurance - I will also include this in
• Rental income protection - in case of floods/damages and the tenant has to move out until the house is habitable again (and therefore doesn't need to pay)
• Rent guarantee income - in case the tenant isn't able to pay/defaults
• Public liability cover - usually £2m or £5m
• Accidental damage protection - if the tenant mistakenly damages your buildings or contents
• Home emergency cover - if your boiler breaks down/water leakage etc.
• Excess protection - you usually have to pay excess on claiming for the items above. This covers your excess

For all the landlords who have been through the ins and outs of landlord insurance contracts - which ones are NOT essential above?
I'm thinking of taking accidental damage protection, rental guarantee if the tenant defaults, and also home emergency cover. 

Is there any above that the insurer likest to wriggle out of paying? For example I heard they can wriggle out of helping out on home emergency.

Would appreciate if someone could help me actually understand what is worth taking and not.

Thanks,

silvercar

Typically, landlord insurance covers building insurance and a small amount for contents along with public liability insurance and rental income protection.

The others you could add on or take separately.

diystarter7

Often leasehold apartments come with buildings insurance but not liability ins.

In our freehold properties, we have buildings insurance, min contents, and liability ins.
With the LA we have rental protection and legal cover to evict a bad T.

Different people seek different cover but imo, building and liability is a must.
After than legal cover to evict if need be and some rental protection as well,

One of our children lets out an apartment in London and it was only when the T claimed the door feel on them and they went to the hospital did the penny drop we had cover for buildings vi service charges/management agents but not liability insurance. The LA went out to look as did we and I quickly cam to the conclusion that a visitor their grandchild had been swinging on the door a 10 year old and the top had torn the screws out of the wood. We got a mouthful but when I/we said we'd send evidence to the police for fraud, it worked and I doubt the cops would have done anything. Since then

diystarter7

btw, consider emergency repairs but be very aware of what is covered and their criteria for cover, EG, age of appliance etc, service history/maintenance etc and if there is an excess etc.

theartfullodger

You take cover for whatever you need.  I agree buildings, bit of contents, public liability, maybe rental protection (although conditions can be very demanding).  Plus perhaps legal expenses cover.  Sometimes mortgage requires certain coverage.

Read what conditions are if there's a cannabis grow claim... 

Depends on your personal circumstances.  If you've £2million in the bank then £5k contents cover probably a waste of money.

Mutton_Geoff

aaryal said:

Hi All,

First time landlord here. I'm in the process of getting buy to let/landlord insurance. I just wondered what I should include in it under one contract and what I should just get separately?

Here are all the different options:

• Buildings insurance - need this as a default
• Contents insurance - I will also include this in
• Rental income protection - in case of floods/damages and the tenant has to move out until the house is habitable again (and therefore doesn't need to pay)
• Rent guarantee income - in case the tenant isn't able to pay/defaults
• Public liability cover - usually £2m or £5m
• Accidental damage protection - if the tenant mistakenly damages your buildings or contents
• Home emergency cover - if your boiler breaks down/water leakage etc.
• Excess protection - you usually have to pay excess on claiming for the items above. This covers your excess

For all the landlords who have been through the ins and outs of landlord insurance contracts - which ones are NOT essential above?
I'm thinking of taking accidental damage protection, rental guarantee if the tenant defaults, and also home emergency cover. 

Is there any above that the insurer likest to wriggle out of paying? For example I heard they can wriggle out of helping out on home emergency.

Would appreciate if someone could help me actually understand what is worth taking and not.

Thanks,

Each one of the nice to have options will erode the profit margin of your new business. Some of these risks are worth self insuring on the basis that they are not designed as hand holding policies for those inexperienced in lettings.

propertyrental

aaryal said:

Hi All,

First time landlord here. I'm in the process of getting buy to let/landlord insurance. I just wondered what I should include in it under one contract and what I should just get separately?

Here are all the different options:

• Buildings insurance - need this as a default unless it's a flat and this is covered by the freeholder
• Contents insurance - I will also include this in  only needed if you let it fully furnished. Many LL buildings policies include £5K of contents which should be enough for white goods and carpets
• Rental income protection - in case of floods/damages and the tenant has to move out until the house is habitable again (and therefore doesn't need to pay) Included in most GOOD LL buildings policies
• Rent guarantee income - in case the tenant isn't able to pay/defaults  an add-on, but be aware usually subject to T being vetted......
• Public liability cover - usually £2m or £5m Included in most GOOD LL buildings policies
• Accidental damage protection - if the tenant mistakenly damages your buildings or contents An add-on to LL buildings policy, but is that not why you take a tenancy deposit? Or sue the T?
• Home emergency cover - if your boiler breaks down/water leakage etc.  Many add-ons to building policies are restrictive eg will just make the property 'safe' eg turn off water mains rather than actually fix the leak! Standalone policies eg BG SHOULD do more (though read the reviews....)
• Excess protection - you usually have to pay excess on claiming for the items above. This covers your excess My view is that it's not worth claiming small amounts anyway as irrespective of no clams protection your future premiums will go up. Think of Buildings cover as insurance against fire etc in which case the excess is a drop in the ocean!

Related though not what you asked: are you a member of a landlords association? Lots of guidance, documents, and, crucially, help/advice with T disputes or S21 evictions, so an alternative to legal cover

https://www.nrla.org.uk/